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MARKETING MANAGEMENT ASSIGNMENT 1
Indian Wrist Watch Industry Competition Analysis of Market Players
PRN-09020541053 Systems & Finance
Select any industry of your choice. Identify 3/4 leading competitors in this industry. Analyze the strategies followed by the lead players & carry out the competition analysis.
Total estimated volume as per 2008 is 44 million units and value of Rs 2700 Cr. Mass market iii. HMT 3. Titan 2. Only 27% of Indians own a watch. Timex Sales HMT 4% OTHERS 14% TITAN TIMEX 22% TITAN 60% TIMEX HMT OTHERS Market Share of Indian Watch Industry 2009 Market has been split into: i. Premium & Luxury brands. Vast proportion of Indian market is below Rs 500 by about 68%. Low end ii. . The key players in the market are 1.INDIAN WATCH INDUSTRY India is an under penetrated market for watches.
. Watches: Popular Priced. 6. So. formerly (Titan watches limited) is a joint venture between Tata group of companies and Tamil Nadu Industrial Development Corporation (TIDCO) was incorporated in 1987. Models: Titan offers the best and the biggest range to customers to choose the watch of their choice with an affordable price.TITAN Titan India Ltd. India and Titan has presence in 4 continent and 32 countries. Wrist Bands SWOT ANALYSIS FOR TITAN Strength: 1. Mid Priced and Premium Priced Eye Gear: Sunglasses. 3.. Nowadays style is a very much evident factor among the youth. 2. 4. Guarantee and warranty for certain period is ascertained to the customers. and within three years of inception became a market leader. Purses. multi functionalities and chronographic. Watches are available with popular functions like dates. It offers about 14 different names with about 1000 plus different varieties with a watch for literally everyone. Exclusive products: Today Titan holds the pride for say that its products both within the country and internationally run in battle position. Prescription Glasses. Titan makes the peoples life more glorious by making stylish wristwatch. Contribution of owned brands and retail. Its EDGE is the slimmest watch in the world position. The profit is accounted by being in the retail space which is booming. Style: Titan first introduced the style concept in India and projected the watch as a fashion accessory. 5. It has its Head Quarters at Hosur. Contact Lenses Accessories: Wallets.
Threats 1. in any condition functional or otherwise and get a flat discount of 25% on the purchase of a brand new. Among 75% market share is in mid-segment and Titan s market share is between 18-20% which is far lower than HMT and Timex. of any make. As the removal of quantitative restrictions on import watches lead to a threat to Titan. 2. Gifting concept: Titan started as a brand which was associated with gifting and relations. Bandhan because there is demand for the products. Opportunities 1. Globalized: The company is not sufficiently globalized in spite of being the market leader in the Indian soil. . Pricing: The average price of Titan in mid-price segment is very high than the other competitors. 3. D. Seasonality: At the time of festival. Weaknesses 1. Titan has less market share. Competitor: Lots of foreign brands are entering in our country with their branded watches. In the mid-price segment the company is not performing up to the mark due to the lack of choice of consumers. 2. Exchanging offer: The Titan gives the exchange offer for any old watch.1100 while the price for HMT is Rs.B.Gold watches and pairs are used during the wedding occasions.550. like Diwali Titan promotes Nebula. The fast track brand is promoted in month of June-August when schools and colleges re-opens. . Average price for Titan is Rs. C. The market is more demonstrate by middle class people and for them Titan is quite costly. 2. 3. Swatch and Citizen. Market share: As the average price of Titan wristwatch is far more than the other competitor. Premium segment: As in premium segment Titan is getting threats from reputed international brand such as Espirit. stylish and technologically advanced watch from Titan.
printing machinery. 5. HMT is the market leader in the mechanical watches which serves the lower segment of the society. . which also manages the tractors business directly. Bureaucratic and centralized decision making inhibited HMT s ability to respond quickly with respect to market changes. No emphasis on Research and Development. HMT (Hindustan Machine Tools) HMT was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Production facility is flexible enough to adapt to newer technologies. tractors. 4. HMT has a very strong brand image because of the quality and reliability offered by the brand. Over the years diversified into watches. die casting & plastic processing machinery. 2. CNC systems & bearings. Competitors have successfully been able to innovate continuously thereby launching newer designs in the market where as HMT has failed to do so. No regular trade audits have been carried out by the company to determine what is going around in the market. Today. Weakness 1. B. metal forming presses. Company s liquidity position has been quite comfortable and has availability of tangible assets such as land and buildings. So. HMT did not have control over their retailers hence they lost control over prices and trade. SWOT ANALYSIS A. 3. Mobile: Nowadays people can get the time and the other feature on mobile phone.3. HMT comprises six subsidiaries under the ambit of a holding company. 4. Strengths 1. It restricted product development to quality development only. 3. 2. 6. the need of wristwatch is in decreasing trend. Successful technology absorption in all product groups through collaborations with world renowned manufacturers and further strengthened by continuous in-house R&D.
It has tied up with Bret Lee as the brand ambassador. Strengths 1. It is the largest selling brand in U. The company has watch for all the different segments for kids. The target market segment for TIMEX watches in India includes the youth. TIMEX WATCHES Timex watches are in the market since 150 years. gift fashion. 4. youth. It has been ranked as the no. 2. Apart from the mechanical watches HMT can also focus on multifunctional and digital watches with advanced technologies. More of unorganized manufacturing has been haunting HMT. 3. Worldwide decline in the production and demand of mechanical watches due to growing acceptance of Quartz watches. SWOT ANALYSIS A. sports etc. 2. There are good diversification possibilities in products. 2. It has a big brand image to support its presence in the Indian watch Industry. With the cheap prices and the availability of the watches by the regional players has been a big reason for the decline in market share. Competitors successfully exploited the lifestyle segmentation which HMT failed to. It has a strong technology to support like data link. D. The unique features lie among the water resistant watches. Enlarge network of the sales outlets. perpetual calendar collection. kids. Opportunities 1. luxury. 1 in U. 4. fashion.C. Company can expand in the market by launching products suitable for customers in a particular market segment like the youth. luxury oriented etc. sports etc. There are different price band available from hundreds to thousands of rupees. 4.A & Canada and is focused on Quartz based wrist watches in India. 3. high end society.S. Leveraging brand equity of HMT to products such as sports gear. Threats 1. 3.S. Lowest cost watch manufacturer in the world.A in 2001. personal accessories. water resistant watch etc. .
375 TITAN HMT TIMEX .Poor.475 3. Threats 1. As the Indian watch market is still majorly untapped more designs and price range and after sale services should be provided to the customers. 2. 1. Opportunities 1.5 3. 5. 4.5 3. The company doesn t have much variety of the products to attract the customers.5 3. Failed to combat the tough competition from other market players. D. The company has opportunity to expand in the luxury and jewelry segment of the watches and the accessories. COMPETITIVE ANALYSIS OF MARKET PLAYERS Rating 1-5.5 3 3 3. It has failed to capitalize on its big brand name and the global recognized presence. 2. retail outlets are few as compared to competitors. 3.15 0. The after sell services and the distribution network.15 0.2 0.4 4 3 3 4 3.5 3. C. 2.2 0.Excellent Attributes Product Quality Reliability Product Design Promotional Expenditure Price Range After sales Services Retail Outlets Weightage and 0. The company has to work to occupy more of the market share as there have been already well established players in the market.5 3. The use of mobile phones is being treated as a substitute for the watches these days. Weakness 1.2 0.B.1 1 5 5 4 4 4 4 4.
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